Procedure 2109 – Contracts, Agreements, MOU

2109 – Contracts, Agreements, MOU
Contractual arrangements legally binding the College may only be executed according to the
procedures set forth below. Contracts entered into on behalf of Barton Community College must
be reviewed and approved by designated College personnel to ensure compliance with
established College procedure regarding contract language and stipulations. Contracts may
only be executed by College designated signatories as specified in this procedure.
Only authorized signatories may sign contracts on behalf of the College which obligate the
College to terms exceeding one year. Contracts must follow Procurement procedure 2315. The
President, or his/her designee and the Vice President of Administration must actively participate
in the negotiation, approval and execution of all contracts which obligate the College to terms
exceeding one year.
For the purposes of this procedure, a "contract" is defined as an agreement between two (2) or
more parties, which is intended to have legal effect and documents the pricing, scope of work
and other related terms and conditions of the relationship, and obligate the College to terms
exceeding one year. All contracts document a common understanding among the parties as to
the essential terms of their agreement, contain mutual obligations, and set forth "legal
consideration," meaning that something of value is exchanged between the parties and include
“agreements”, memorandum of agreement (MOA), and memorandum of understanding (MOU).
Oral arrangements are not an acceptable method of procurement; therefore they must be
written to be enforceable. An agreement may constitute a binding contract even though one
party provides something of value to the other party at no charge.
Elements of a Contract. The elements necessary to form a legally binding and enforceable
contract are:
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Offer and acceptance. All contractual relationships require an offer by one party and
acceptance by another party.
Legally enforceable. Contracts must be for a legal purpose to be legally enforceable.
Mutuality of obligation. Parties entering into a contract must have a “meeting of the
minds”, which means that the parties are agreeing to the same thing, in the same sense,
and at the same time.
Certainty of subject matter. Contractual provisions must be sufficiently defined to enable
courts to understand the parties’ obligations.
Consideration. This is an essential element, without which contracts are unenforceable,
even if all other elements are present. Consideration often is, but is not necessarily
monetary. It consists of either a benefit to the party receiving the promise or a detriment
to the party making the promise. It may consist of some right, interest, profit, or benefit
accruing to the other party.
Competent Parties. Parties to a contract must have legal capacity to contract. By
definition, college representatives do not have legal capacity; only the President or
his/her designee may contract.
Contract Signatory Authority
The authorized individuals to sign contracts on the behalf of the College are set by College
Policy and Procedures and are as follows:
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Board Chairperson
College President, or the Acting President
Vice President of Administration, when so designated in writing by the College President
Delegation of Signatory Authority
No employee or agent of the College has the authority to enter into any contract on behalf of the
College, unless so designated in writing by the College President. Designation of signatory
authority requires a valid and effective delegation of authority before individuals may execute
agreements on behalf of the College consistent with all other applicable College purchasing and
agreement-related policies and procedures.
An agreement that is not expressed in writing and approved and executed in accordance with
this procedure shall not be binding or enforceable against the College.
Commitments made by unauthorized employees may become their personal obligation and may
subject them to disciplinary action. Any employee who signs a contract or seeks to bind the
College to an agreement in violation of this policy may be subject to discipline, up to and
including termination.
Initiation, Negotiations, Review and Approval
The initiation, negotiations, review and approval of contractual documents by College
employees who wish to involve College resources shall follow the procedures as outlined below.
Initiation
Before entering into negotiations, the supervising Dean must notify the Vice President of
Administration and Vice President of Instruction (as applicable). The supervising Dean, or their
designee, will work with the Vice President of Administration on the contract. The Vice President
of Administration will notify and consult with the President as necessary.
Negotiations
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Only the employee(s) designated by the supervising Dean shall participate in the
negotiation process.
Contract negotiations must be completed prior to the development and processing of
paperwork in order to best serve the potential relationship.
The Vice President of Instruction, Vice President of Administration, or President may
also require consultation with the College Attorney prior to final approval.
Review and Approval
The Supervising Dean will oversee the following review and approval procedure prior to
finalizing the contract and obligation of funds.
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Program Director review and approval (signature, if required)
Supervising Dean review and approval (signature, if required)
Vice President of Administration review and approval
Vice President of Instruction review and approval (if applicable)
President or his/her designee, review, approval, and signature
The Vice President of Instruction, Vice President of Administration, or President may
also require consultation with the College Attorney prior to final approval.
Maintenance of Contracts, Agreements, MOUs
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The supervising Dean must forward a copy of all signed, final contracts, agreements, or
MOUs to the Assistant to the President and the Vice President of Administration for
inclusion in the administrative file.
The Assistant to the President will review the documents for completeness and
maintains a scanned and hardcopy of the document.
The appropriate program office must maintain original or copy of the final contract,
agreement, or MOU.
Contracts Made under a Federal Award
All contracts made by the College under a Federal award must contain provisions covering the
following as applicable.
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Contracts for more than the simplified acquisition threshold currently set at $150,000,
which is the inflation adjusted amount determined by the Civilian Agency Acquisition
Council and the Defense Acquisition Regulations Council (Councils) as authorized by 41
U.S.C. 1908, must address administrative, contractual, or legal remedies in instances
where contractors violate or breach contract terms, and provide for such sanctions and
penalties as appropriate.
All contracts in excess of $10,000 must address termination for cause and for
convenience by the College including the manner by which it will be effected and the
basis for settlement.
Equal Employment Opportunity.
Davis-Bacon Act.
Contract Work Hours and Safety Standards Act (40 U.S.C. 3701–3708).
Rights to Inventions Made Under a Contract or Agreement.
Clean Air Act (42 U.S.C. 7401–7671q.)
Federal Water Pollution Control Act (33 U.S.C. 1251–1387)
Mandatory standards and policies relating to energy efficiency which are contained in
the state energy conservation plan issued in compliance with the Energy Policy and
Conservation Act (42 U.S.C. 6201).
Debarment and Suspension (Executive Orders 12549 and 12689)
Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)
Contact(s):
Vice President of Administration
Related Form(s)
 None
References
§§ 200.317 – 200.326, 200.33, Appendix II to §200 - Contract Provisions for Non-Federal Entity
Contracts Under Federal Awards (Federal Register, Vol.78, No. 248/Thursday, December 26,
2013/Rules and Regulations).
Relevant Policy or Procedure(s): 1107 – Contracts and Other Institutional Commitments
Approved by: President
Date: 6/1/15
Revision(s): 5/25/17 (minor revision)